Wednesday, July 19, 2006

AT&T launched its Homezone television service in two areas on Wednesday, combining Internet functionality and satellite television into a single package. The option will be made available to customers in Ohio and San Antonio, Texas, with a launch in 80 percent of its coverage area by the end of the year.Television service would be provided by DISH Network, with AT&T providing Internet access to download video content, as well as using Yahoo online services to offer additional functionality. Homezone is also expected to allow the company to offer television services in places where its fiber-optic lines will not reach.That fiber optic service, now being called U-Verse, is not expected to be widely available for another two years. The offering is currently available in a test mode in San Antonio, where AT&T is headquartered. The company says U-Verse will make an appearance in other markets by the end of the year."AT&T Homezone combines the entertainment that consumers want most in a way that goes well beyond anything our competitors offer today," chief marketing officer Rick Welday said. "This new service underscores the company's strategy to integrate the three screens that many consumers value most today: the TV, PC and cell phone."Homezone bundles will be priced between $80 and $140 USD per month, depending on the area and features selected.Future enhancements to Homezone include HDTV service, and music and video content from partner Akimbo. Eventually, customers will gain remote DVR programming functionality through Cingular phones, AT&T said.